continuation of the Ponzi requires debt markets to continue growing without limits …. who is gonna buy all this new and roll-over debt that needs to find a home? no guidance from the Bernank re: QE3 as it might cause a waterfall decline in debt markets, esp USD denominated.
— or was Gross told there’d be a change in the rules that forbids selling T debt? no shorting banks … what other types of speculation could be outlawed on short notice?
We are close to something breaking hard …. or perhaps a military distraction.
how can these guys continue to have ZIRP ?
Risks to Japan’s recovery include higher oil prices that could depress capital spending and private consumption, according to Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute in Tokyo. Crude oil prices have risen more than 10 percent this year and are approaching their 2008 peak.
“If oil keeps surging, growth may not accelerate in the coming quarters like we had expected,” Shinke said. “Going forward, rising oil prices are going to erode corporate profits, and if that leads to a rise in consumer prices, that could really hold down consumer spending.”
Korean just raised to fight inflation.
Pimco, with Greenspan as consultant, loses confidence … from ZH:
the Total Return Fund had reduced its holdings of US Treasuries down to 0%! (link here) This is a very big deal and the only time to my knowledge the fund has ever moved total US Treasury holdings to 0%.
Euro zone not out of the woods:
“There is quite a lot of peripheral supply that needs to be digested and apparently we’re struggling to find more buying interest at these levels,” Marcel Bross, a fixed-income strategist at Frankfurt-based Commerzbank, told Bloomberg. “We have these important meetings coming up where we see some potential for disappointment.”